fixed welfare evaluation for arbirtrary value of the state

variables. The preprocessor still needs to be modified to allow
arbitrary initial value of the Lagrange multipliers
(cherry picked from commit 9eb5b283b1da78b6d3f76739b91802268268b564)

matlab/evaluate_planner_objective.m

-function planner_objective_value = evaluate_planner_objective(M,oo,options)
+function planner_objective_value = evaluate_planner_objective(M,options,oo)
 
 %function oo1 = evaluate_planner_objective(dr,M,oo,options)
 %  computes value of planner objective function     
 % 
 % INPUTS
-%   dr:       (structure) decision rule
 %   M:        (structure) model description
-%   oo:       (structure) output results
 %   options:  (structure) options
+%   oo:       (structure) output results
 %    
-% OUTPUTS
-%   oo1:      (structure) updated output results
-%
 % SPECIAL REQUIREMENTS
 %   none
 
@@ -105,30 +101,48 @@ else
     Wyu = Uy*gyu+Uyygygu+beta*(Wy*Gyu+Wyygygu);
     Wss = (Uy*gss+beta*(Wuu*M.Sigma_e(:)+Wy*Gss))/(1-beta);
 end
+% initialize yhat1 at the steady state
+yhat1 = oo.steady_state;
 if options.ramsey_policy
-    yhat = zeros(M.endo_nbr,1);
-    yhat(1:M.orig_endo_nbr) = oo.steady_state(1:M.orig_endo_nbr);
-else
-    yhat = oo.endo_simul;
+    % initialize le Lagrange multipliers to 0 in yhat2
+    yhat2 = zeros(M.endo_nbr,1);
+    yhat2(1:M.orig_endo_nbr) = oo.steady_state(1:M.orig_endo_nbr);
 end
-yhat = yhat(dr.order_var(nstatic+(1:npred)),1)-dr.ys(dr.order_var(nstatic+(1:npred)));
+if ~isempty(M.endo_histval)
+    % initialize endogenous state variable to histval if necessary
+    yhat1(1:M.orig_endo_nbr) = M.endo_histval(1:M.orig_endo_nbr);
+    if options.ramsey_policy
+        yhat12(1:M.orig_endo_nbr) = M.endo_histval(1:M.orig_endo_nbr);
+    end
+
+end
+yhat1 = yhat1(dr.order_var(nstatic+(1:npred)),1)-dr.ys(dr.order_var(nstatic+(1:npred)));
+yhat2 = yhat2(dr.order_var(nstatic+(1:npred)),1)-dr.ys(dr.order_var(nstatic+(1:npred)));
 u = oo.exo_simul(1,:)';
 
-[Wyyyhatyhat, err] = A_times_B_kronecker_C(Wyy,yhat,yhat,options.threads.kronecker.A_times_B_kronecker_C);
+[Wyyyhatyhat1, err] = A_times_B_kronecker_C(Wyy,yhat1,yhat1,options.threads.kronecker.A_times_B_kronecker_C);
 mexErrCheck('A_times_B_kronecker_C', err);
 [Wuuuu, err] = A_times_B_kronecker_C(Wuu,u,u,options.threads.kronecker.A_times_B_kronecker_C);
 mexErrCheck('A_times_B_kronecker_C', err);
-[Wyuyhatu, err] = A_times_B_kronecker_C(Wyu,yhat,u,options.threads.kronecker.A_times_B_kronecker_C);
+[Wyuyhatu1, err] = A_times_B_kronecker_C(Wyu,yhat1,u,options.threads.kronecker.A_times_B_kronecker_C);
 mexErrCheck('A_times_B_kronecker_C', err);
-planner_objective_value(1) = Wbar+Wy*yhat+Wu*u+Wyuyhatu ...
-    + 0.5*(Wyyyhatyhat + Wuuuu+Wss);
-planner_objective_value(2) = Wbar + 0.5*Wss;
+planner_objective_value(1) = Wbar+Wy*yhat1+Wu*u+Wyuyhatu1 ...
+    + 0.5*(Wyyyhatyhat1 + Wuuuu+Wss);
+if options.ramsey_policy
+    [Wyyyhatyhat2, err] = A_times_B_kronecker_C(Wyy,yhat2,yhat2,options.threads.kronecker.A_times_B_kronecker_C);
+    mexErrCheck('A_times_B_kronecker_C', err);
+    [Wyuyhatu2, err] = A_times_B_kronecker_C(Wyu,yhat2,u,options.threads.kronecker.A_times_B_kronecker_C);
+    mexErrCheck('A_times_B_kronecker_C', err);
+    planner_objective_value(2) = Wbar+Wy*yhat2+Wu*u+Wyuyhatu2 ...
+        + 0.5*(Wyyyhatyhat2 + Wuuuu+Wss);
+end
+
 if ~options.noprint
     disp(' ')
     disp('Approximated value of planner objective function')
     disp(['    - with initial Lagrange multipliers set to 0: ' ...
-          num2str(planner_objective_value(1)) ])
-    disp(['    - with initial Lagrange multipliers set to steady state: ' ...
           num2str(planner_objective_value(2)) ])
+    disp(['    - with initial Lagrange multipliers set to steady state: ' ...
+          num2str(planner_objective_value(1)) ])
     disp(' ')
 end
\ No newline at end of file

matlab/ramsey_policy.m

@@ -37,6 +37,6 @@ if options_.noprint == 0
 end
 
 
-oo_.planner_objective_value = evaluate_planner_objective(M_,oo_,options_);
+oo_.planner_objective_value = evaluate_planner_objective(M_,options_,oo_);
 
 options_ = oldoptions;
\ No newline at end of file